Structural reforms to buoy China H shares

Taylee Lewis

— 1 minute read

26 June 2015

The China H shares market will continue to benefit from structural changes and government reforms, says BlackRock.

The H shares market, which are the shares of companies based in mainland China but traded on the Hong Kong Stock exchange, are poised to increase in value as a result of structural reform currently under way.

BlackRock head of China equities, Helen Zhu, said that “we continue to look out for very clear structural changes that may bring higher return opportunity for different sectors and different companies”.

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“What we would like to see is actually deeper reforms that improve the outlook for the market in terms of sustainability of growth over the longer term,” Ms Zhu said.

Ms Zhu explained that Chinese policymakers are attempting to implement reforms that are positive for the long term even if that means some short-term pain.

“Over the medium- to longer-term the intention is not to maximise the pace of growth, but rather to make more strides in terms of enhancing the composition of growth and therefore enhancing the sustainability of growth,” she said.